Watch: NACo webinar recording about the Local Assistance and Tribal Consistency Fund
The Fund is a general revenue enhancement program that provides additional assistance to eligible revenue sharing counties and eligible Tribal governments.
The American Rescue Plan appropriated $2 billion to Treasury across fiscal years 2022 and 2023 to provide payments to eligible revenue sharing counties and eligible Tribal governments for use on any governmental purpose except for a lobbying activity. Specifically, the American Rescue Plan reserves $250 million to allocate and pay to eligible Tribal governments for each of fiscal years 2022 and 2023, and reserves $750 million to allocate and pay to eligible revenue sharing counties for each of fiscal years 2022 and 2023. Under this program, recipients have broad discretion on uses of funds, similar to the ways in which they may use funds generated from their own revenue sources.
According to Treasury, 72 Kentucky counties are eligible to receive a total of $13.2 million in allocations in FY22 and FY23. Most Kentucky counties are slated to receive $50,000 each year, but 25 counties (based on an allocation formula) are eligible to receive more, with some counties eligible to receive more than $250,000.
Note: the deadline to certify for funds was Jan. 31, 2023
Key points from the NACo webinar
- Counties can treat funds the same as general revenues collected from local taxes – maximum flexibility in use of funds
- Funds can be used for any governmental purposed other than lobbying activities
- Can cover costs that occurred after March 15, 2021
- Funds will remain available to eligible counties until expended – no obligation or expenditure deadline
- Very limited reporting requirements
- Counties only have to submit an annual report by March 31 each year until the funds are expended
- The first reports must be filed with Treasury no later than March 31, 2023, to account for the period ending Dec. 31, 2022
- Counties will report how LATCF dollars are spent under four categories, including:
- Government services
- Capital expenditures
- Transportation/water/sewer/technology infrastructure
- Other governmental purposes
Also see: Treasury Resources and Guidance on Spending and Reporting